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YOUR SOURCE FOR CAWG AND INDUSTRY NEWS
FOR CAWG MEMBERS ONLY
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This Week's eNews Includes:
CAWG News:
- Spotted Lanternfly News
- Groundwater Recharge Survey
- Imported Wine
- Fixing Unemployment Insurance (UI)
- Grape and Wine Magazine - December 2024 / January 2025 Issue
- USDA Launches New Marketing Assistance Program for Specialty Crop Producers
- CAWG Webinars - Recording & Upcoming Opportunities
- CAWG Awards of Excellence Reception
Industry News:
- Final Virtual Cost Protection Listening Session
- Sonoma County Vintners Announces “Wine Is Us” Campaign Promoting Positive Benefits of Wine
- California Energy Price Data for November 2024
- Ciatti California Market Report, December 2024
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Department of Pesticide Regulation Releases 2024-2028 Strategic Plan
Upcoming Events:
- Upcoming CSWA Webinars and New Deadlines for the 2025 Certification Year - Dec. 18, 2024
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2025 Unified Wine and Grape Symposium - Register Today and Save!
REMINDER: CAWG membership invoices have been mailed. Please contact Mindy DeRohan with any questions or to pay your invoice. Thank you - look forward to working for you in the year ahead.
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Groundwater Recharge Survey
Climate change means that we will likely still get the same amount of water from the heavens, but it will come in larger amounts (all at once), mixed with long periods of no precipitation at all. So, when it rains, we need to capture high flow water from rivers and streams during atmospheric rivers, bomb cyclones, and other similar storm events.
That is why CAWG is working with Wine Institute to help streamline the process for groundwater recharge permits. We recently met with key staff at the Water Resources Control Board who are receptive to working with us on this important issue. This week at a press conference near the location of the upcoming Sites Reservoir, Governor Newsom spoke of the importance of increasing the annual amount of groundwater recharge.
We all know that for California to maintain a reliable supply of water that meets the needs of the state, there must be a substantial increase in groundwater recharge. And it is in a grower’s interest to recharge the groundwater basin to have water available later. But the challenges are substantial.
Informal Survey – With all that in mind, CAWG staff is looking to gather information from growers on groundwater recharge. If you have a moment, could you send a quick email to Michael@cawg.org? Please put “Groundwater Recharge Survey” in the subject line and share with us your experience. What are the biggest challenges for you as a grower to participate in groundwater recharge efforts? Is it the cost to transfer the water? Permit process? Cost of permitting? Etc. We want to be respectful of your time, so please feel free to be brief.
CAWG staff are always more effective when we hear directly from growers like you. Thank you.
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Imported Wine
Any California grower knows firsthand that an escalating concern for vineyard owners is the declining price and the falling demand for winegrapes. This is in part a direct result of lower consumption of wine and increased imports of wine into California from around the world. However, we must keep in mind that this is not a problem that is unique to California.
This week, Wine Searcher reported, “Winemaker violence reaches new heights in France.” The article stated, “The CAV, or Comité d'Action Viticole ("Winegrowers' Action Group") is a shadowy, long-standing, direct-action winegrowers' group in the Languedoc with a history of violent acts over the last 20 years.” CAV’s primary concern these days is the amount of wine being imported into France from Spain, the US, and other countries.
In the months ahead, CAWG will be working on efforts to help distinguish California wine in the California marketplace. California is the Farm to Fork capital of the nation. Yet, fine California restaurants that promote a locally grown menu often serve imported wine with their popular menu items. California vineyards produce some of the finest winegrapes in the world, and our wineries bottle incredible wines.
How to distinguish California wines in the marketplace will require some creative thinking. But all can agree that California wines need to be part of the pride we all take in our Farm to Fork philosophy.
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Fixing Unemployment Insurance (UI)
Last week, the independent Legislative Analyst Office (LAO) released a report concluding, “In Light of Challenges, State’s UI Tax System Needs Full Redesign.” Below is LAO’s recommended approach to fix California’s UI system:
- Increase the Taxable Wage Base. Increase the taxable wage base from $7,000 to $46,800.
- Redesign Employer Taxes. Adopt a simple, robust UI tax structure comprised of a standard rate and a reserve-building rate.
- Rethink Experience Rating. Transition to a method of experience rating based on each business’ changes in employment, rather than their individual UI contributions and benefits.
- Refinance the Outstanding Loan. Repay the outstanding federal loan [currently $20 billion] immediately by using new borrowing, split evenly between: (1) A revenue bond to be repaid by employers, and (2) Pooled Money Investment Account borrowing to be paid by the state’s General Fund.
There is a strong argument to be made that California’s UI system needs to be modernized. But, the LAO’s approach would do so at a huge expense to California businesses. The increase in the taxable wage base alone would represent an ongoing 670% tax increase. The revenue bond would be another short-term cost for employers of $10 billion.
This report will no doubt spur legislation in 2025. Many agriculture employers pay the highest UI taxes when compared to other industries, so, this legislation would be a primary focus for CAWG in 2025.
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Grape and Wine Magazine - December 2024 / January 2025 Issue
JCS Marketing recently released their December 2024 / January 2025 Magazine featuring CAWG members and advocacy work:
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Miller Family, CAWG's 2025 Grower of the Year, Plan Their Vineyards for the Next Generation (page 10) - The article focuses on the Miller Family, their involvement in CAWG, commitment to sustainability and innovation, and their business strategies preparing for what winegrape growing looks like in the future.
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California Association of Winegrape Growers Begins Work on 2025 Advocacy Agenda (page 20) - The articles focuses on CAWG's advocacy during the 2023-24 legislative session and plans for 2025 including affordable housing for agricultural workers, expanding composting on ag lands, and furthering sustainable water policies.
Read the full magazine here.
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USDA Launches New Marketing Assistance Program for Specialty Crop Producers
This week, USDA's Farm Service Agency (FSA) rolled out additional information regarding the Marketing Assistance for Specialty Crops (MASC) program; which offers $2 Billion in funding to help specialty crop producers expand markets and manage higher costs, including labor. It is highly encouraged that California winegrape growers consider applying for this new program, as it is meant to be an economic assistance program for producers.
Applications are open and the deadline to apply is Jan. 8, 2025. CAWG's full eAlert has information on eligibility, application steps, program payouts, and additional resources.
FSA is hosting a webinar to discuss how to apply for the program on December 19 at 10:00 AM.
Register here.
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Quote of the Week
"What we don't need is the governor showing up in Colusa with another binder, another website, and more paper, but no action. What they want to see is construction and they want to see moving dirt," said Republican Assemblymember James Gallagher.
For context, this week, Governor Newsom was touting his jobs and water plans in Colusa County as he continued his tour of rural communities that voted for President-elect Donald Trump. Newsom spoke at a rice farm in Colusa which is a few miles from the land where the proposed Sites Reservoir sits, waiting for a groundbreaking.
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CAWG Webinars - Recordings & Upcoming Opportunities
CAWG hosted two webinars in the last few weeks focused on crop insurance policies and enhancements. Please find the recording links posted below:
Don't miss these upcoming opportunities and please share webinar details with others in your company.
All registration pages are hyperlinked above.
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CAWG Awards of Excellence Reception
Join CAWG on Tuesday, January 28, 2024, at 6:00 PM at the Sheraton Grand Sacramento for the Awards of Excellence celebration following the Welcome Reception at the Unified Wine and Grape Symposium.
CAWG will honor the Miller Family, The Thornhill Companies as the 2025 Grower of the Year, and Randy Heinzen, Vineyard Professional Services as the 2025 Leader of the Year.
Registration for the Unified Wine and Grape Symposium is not required and the Awards of Excellence Reception is free to attend with no RSVP needed. Sponsorship opportunities are available (please contact Jenny Devine for more information)!
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Final Virtual Cost Protection Listening Session
The Paso Robles Wine Country Alliance along with Watts & Associates is hosting a virtual listening session on December 18 at 10:00 AM for Winegrape producers to learn about and offer additional feedback on the development of the cost protection program.
This will be the last opportunity for winegrape growers to weigh-in on this potential insurance policy.
Cost protection policy is a new policy designed to offer producers the ability to insure against increases in input costs through the Federal Crop Insurance Program. Cost Protection utilizes a bundled approach, where inputs such as fuel (diesel and natural gas), fertilizer (NPK), interest rates, and potentially labor are locked in during the fall preceding the growing season. In the event the value of these inputs rises over the winter and spring, producers who have signed up for the Cost Protection policy would potentially receive an indemnity payment based on their crop's normal input quantities and number of acres grown.
Register Here.
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Sonoma County Vintners Announces “Wine Is Us” Campaign Promoting Positive Benefits of Wine
This week, Sonoma County Vintners (SCV) announced their new “Wine Is Us” multimedia campaign to advocate for and promote Sonoma County wines.
The “Wine is Us” campaign is designed to increase awareness of the many comprehensive benefits of moderate wine consumption, as reported in reputable medical studies. Consumers are also invited to share a glass of wine with friends and family, emphasizing the more positive social, mental, and physical health impacts.
SCV’s new campaign will begin over the 2024 holiday season and expand throughout 2025 on various media platforms including radio, social media, digital display, and more.
Learn more here.
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California Energy Price Data for November 2024
The California Center for Jobs and the Economy provides insights into energy prices that impact California:
In November, Californians paid an average of $4.46 per gallon of regular gasoline—$1.50 more than the U.S. average and Diesel prices averaged $4.88 per gallon, maintaining a $1.44 premium over other states.
California’s average residential electricity price reached 31.62 cents/kWh in September—105.6% higher than the U.S. average. This increase has pushed California to the 8th highest rank for annual residential electricity bills. California leads the nation with commercial rates 115% above the U.S. average and industrial rates 179.3% higher.
For a deeper dive into California energy data, read the full report here.
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CAWG Concerns - Department of Pesticide Regulation 2024-2028 Strategic Plan
The California Department of Pesticide Regulation (DPR) has released its final 2024-28 Strategic Plan. DPR states that this plan details measurable goals to advance sustainable pest management and enhance pesticide regulation. Key objectives include expanding access to sustainable alternatives, improving timelines for risk evaluations, strengthening statewide enforcement, and increasing transparency in decision-making.
This five-year plan includes timelines for achieving objectives, ensuring accountability, and providing the public with insight into DPR’s priorities and progress. However, CAWG is raising concerns that the plan fails to adequately address how DPR will speed up their review of new pest management products.
Read DPR's full press release here.
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Ciatti California Market Report, December 2024
Ciatti Company Wine Brokers released their December Report detailing their assessment of California's bulk wine and grape markets.
"We have downwardly revised our 2024 harvest estimate from 3.2-3.3 million tons to 3.1-3.2 million, as we suspect some late picking – into mid-November in some areas – was more than offset by the detrimental effects of October’s unseasonably intense heat. Many growers are now preparing for another year in which tough decisions will need to be made regarding the extent of financial outlays on farming and even whether or not to remove vineyards altogether. If the grape market continues at its present rate, uncontracted fruit could represent a higher percentage of the total available crop in 2025 than we have seen for a number of years."
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Upcoming Events and Trainings | |
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Upcoming CSWA Webinars and New Deadlines for the 2025 Certification Year
CSWA is hosting an upcoming webinar focused on the Certified California Sustainable Winegrowing certification process on December 18. This webinar will cover certification renewal, important reminders, and how to prepare for your 2025 audit.
Beginning in 2025, CSWA certification deadlines will be one month earlier than in previous years. The new certification deadlines starting in 2025 will be February 1, April 1, and June 1.
Certified participants can start the renewal process for the 2025 certification year beginning last week, November 1, 2024. If meeting the new deadlines will be a challenge, please discuss with your auditor if there is availability in a later deadline group and notify the California Sustainable Winegrowing Alliance (CSWA) certification team by January 15th.
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2025 Unified Wine and Grape Symposium - Register Today and Save!
CAWG members receive up to a $200 discount on registration as a benefit of their membership. Codes have been emailed to all CAWG members. If you didn't receive your membership code, please contact the CAWG office at 916-379-8995 or email Mindy@cawg.org.
Register here for the 2025 Unified Wine and Grape Symposium (UW&GS)!
For a glimpse of what's in store at the 2025 Grapegrowing breakout sessions, check out the session details outlined below. The full program can be found here.
Sponsorship & Advertisement Opportunities are Available! Contact us to learn more about ways to promote your brand and stand above the competition. Custom sponsorship and advertising opportunities are available for all budget sizes. To view the full list of opportunities, you can visit the Unified website or download the brochure. For questions, contact Jenny Devine.
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